Exam 19: Economic Inequality

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CAN be made on the basis of the graph?

"If the distribution of income was equal, the Lorenz curve would be a straight, 45° line." Is the previous statement or in?

-In the above table, which tax plan is proportional?

Market income is

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ________.

The closer an income Lorenz curve is to the line of equality, the

Wealth differs from income in that

Specialization of productive activity between men and women might explain why

Information technologies are a ________ for low-skilled labor and a ________ for high-skilled labor.

With respect to income redistribution programs, what is meant by "The Big Tradeoff," and what causes it?

A progressive income tax is one that

The wage rate for high-skilled labor is higher than that for low-skilled labor because

-In the figure above, the line of equality is